Prime Minister Rozgar Yojna Explained

Launched in 1993, the Prime Minister Rozgar Yojana (PMRY) is a government initiative to assist educated unemployed individuals in initiating self-employment ventures. 

Financial support is extended to those seeking to establish personal ventures in the manufacturing, services, and trading sectors.

Focusing on creating sustainable self-employment opportunities, the scheme was initially designed to benefit 10 lakh educated unemployed women and urban youth across India.

The objective was to set up 7 lakh micro-enterprises and ventures within a span of two and a half years.

However, seeing the PMRY programme's success and positive outcomes, the government transformed it into a permanent scheme.

Activities Covered and Project Cost

For the PMRY program, it centres on activities that make economic sense. This includes different areas like agriculture and related tasks. It's important to mention that direct farming tasks, such as growing crops and buying manure, are not part of this program.

Implementation and Training

Facilitating the PMRY scheme on a national scale is the Development Commissioner of Small Scale Industries (SSI) within the Union Ministry of Small Scale, Rural, and Agro Industries.

At the state level, barring the four metropolitan cities (Chennai, Delhi, Mumbai and Kolkata), the duty of executing the scheme falls under the Commissioner/Director of Industries.

To fortify beneficiaries in kickstarting their ventures, a thorough training initiative lasting 15-20 days imparts vital skills and knowledge crucial for effective business management.

Subsidy and Margin Money

Within the PMRY framework, borrowers receive a subsidy amounting to 15% of the project cost, with a maximum limit of ₹7,500.

Entrepreneurs may also contribute margin money, ranging from 5% to 16.25% of the project cost. This ensures a combined total of 20% for subsidy and margin money.

Repayment Schedule and Interest Rates

The loan repayment period spans 3 to 7 years, offering flexibility based on the borrower's preference. Banks apply regular interest rates, ensuring equitable and reasonable terms for the borrowers.

Eligibility Criteria

To be eligible for the PMRY scheme, individuals must meet certain criteria:

1. Age: The scheme is open to educated unemployed individuals between 18 and 35.
2. Educational Qualifications: Candidates must have passed their 8th standard examinations.
3. Income Limit: The combined income of the beneficiary, spouse, and parents should not exceed ₹40,000 per month.
4. Residence: The applicant must be a permanent resident of the area for at least three years.
5. Defaulters: Applicants should not have any outstanding loans or defaults with cooperative banks, nationalised financial institutions, or other banks.

Application Process

To apply for the PMRY scheme, individuals need to follow these steps:

1. Visit the official website of the scheme.
2. Download the application form and fill in all the necessary details.
3. Submit the completed form to the respective bank under the PMRY scheme.

Required Documents

1. Applicants need to provide the following documents along with their application form:
2. Proof of residence in the concerned district (Voter ID Card/Ration Card)
3. Proof of date of birth (Birth certificate/School leaving certificate)
4. Proof of education qualification
5. Training completed, if any
6. Family income proof
7. Caste certificate, if applicable

Modifications and New Developments

Over the years, the PMRY scheme has undergone several modifications and updates to serve its beneficiaries better. Some of these include:

1. Increase in Age Threshold: The upper age limit has been extended by 10 years beyond age 35 for women, Scheduled Castes (SC), and Scheduled Tribes (ST).
2. Lowered Educational Qualifications: Women eligible under the scheme now only require an 8th standard qualification instead of the previous requirement of 10th standard.
3. Enhanced Project Cost Limit: The upper limit for project costs has been increased from ₹1 lakh to ₹2 lakh.
4. Inclusion of Agriculture and Allied Sectors: The scheme now covers activities related to agriculture and allied sectors, such as horticulture, poultry, fishing, and piggery.
5. Group Financing Eligibility: Group financing is now available up to a sum of ₹5 lakh.

The Bottom Line

The PMRY is a crucial government endeavour aiming to empower educated unemployed individuals with self-employment opportunities. 
By providing financial support, training, and subsidies, the scheme facilitates the establishment and management of ventures and contributes to growth and employment generation.

In its ongoing evolution, the PMRY scheme remains responsive to the evolving needs of its beneficiaries, actively promoting inclusive and sustainable development throughout India. 

I recommend exploring our combined article, available here, for an overview of various government schemes.